If you and the person you're sending the money to both have bank accounts, then you can easily have your bank send money from your account to theirs. You can also use your bank account to send money through a money transfer service for less than it would cost to transfer cash. Banks usually charge a flat fee for this service. For example, banks may charge $20 for a transfer anywhere inside the U.S. and more for overseas locations. An additional downside to wiring money through a bank is that it can take anywhere from 2 to 5 business days, depending on your bank and there are fewer options for picking up the money in the home country.

Most people choose how they wire money home based upon convenience of the location or agent who initiates the transfer and trust in the company sending the money. Some people feel that a company from their home country who knows their town or region and can “vouch” for the different locations for pick-up can be more trustworthy. Personal relationships play the most important role for the majority of immigrants sending money home. Nonetheless, it is important to shop around for the best deal both here and in the country you are sending to. Agents can wield a lot of influence over how they money is sent, so it makes sense to test out various locations before settling on a single location.

Although the costs of wiring money have been declining since the 1990s, nearly $4 billion still gets eaten up in wire transfer fees every year. Fees will vary depending what kind of service you choose and on where you are sending the money. For example, it may cost about $27 to send $500 to Ecuador, but $55 to send the same amount to the Dominican Republic or $5 to Mexico.

Money-wiring services are under more examination as concerns about money laundering and terrorism increase. Additional documentation is required to wire larger amounts of money now; make sure you bring the correct identification and documentation when you go to send money.